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Large Acquisition of Landscape Maintenance Company

Discussion in 'Business Operations' started by G-Jacobsen, Oct 6, 2019.

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  1. OP
    OP
    G-Jacobsen

    G-Jacobsen LawnSite Member
    Messages: 40

    Will do.
     
  2. Green Mentorship

    Green Mentorship LawnSite Senior Member
    from Heaven
    Messages: 333

    You talk about people being in place. That's a really dangerous place to be.

    You need to stop, take a break, and go read this book.
    https://www.amazon.com/Traction-Get...on+book&qid=1570494345&sprefix=eos+tra&sr=8-3

    It will teach you so much now and ongoing.

    I bring it up because you'll see the right way to view things: defining seats and roles the company needs and then hiring people to fit those seats.

    Slow yourself down. You started this saying you're in a rush to get this deal done. Here's a news flash: there aren't many people willing to fork over this kind of money for this business. You're probably the only buyer they're talking with and you'll play your hand better if you get a little cold.

    This is life altering debt you speak of. Don't take it lightly and be in a rush.
     
  3. OP
    OP
    G-Jacobsen

    G-Jacobsen LawnSite Member
    Messages: 40

    Yes you are right. Life changing for sure. Ill check it out, thanks for the honest feedback and you're right there aren't many people qualified or willing to take on this kind of business. That came from brokers mouth.
     
  4. OP
    OP
    G-Jacobsen

    G-Jacobsen LawnSite Member
    Messages: 40

    Hey guys, just wanted to update you. We opted out of the deal for the business purchase. I appreciate all the honest feedback from you all. Ultimately it was too much, too fast with not enough capital to feel comfortable should the business have cash flow shortages. I felt I could have ran the business but certainly would have taken a while to learn the ins and outs. We certainly spent some money in the process but we learned invaluable information on many levels. We will be reinvesting the money in my own business and will darn near be debt free aside from one truck. No brainer there. Ive heard many of you say, "build it from the ground up," and I would agree whole heartedly. Hope you all finish the year strong and profitable!
     
  5. Green Mentorship

    Green Mentorship LawnSite Senior Member
    from Heaven
    Messages: 333

    Good deal. Did you buy and start reading that book I linked above?
     
  6. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 17,644


    Good job
    Those were my thoughts
    Something looks too good to be true and you’re too small to acquire them with no “shielding” from whatever it is you don’t know.

    4 million
    Owner retiring?
    He’s looking for some blue sky when he could just let exiting management run it for him .... “something” fishy there.
     
  7. OP
    OP
    G-Jacobsen

    G-Jacobsen LawnSite Member
    Messages: 40

    Green Mentorship, no I havent yet gotten it yet but I looked at the book and am going to order it once I get some free time.

    Yes, there were some other unsettling things about the whole deal. The broker was inadequate to put it nicely and we didnt think the broker and owner were working towards the right structure if the deal etc. Also I asked the owner about any past or present litigation involving his company and he answered no. I easily looked through public records and found a lawsuit from 2013. Lost confidence there and the broker said she didn't see how it was relevant and I told her it was about trust. Several other things too but I agree certain things weren't quite adding up.
     
  8. fireball756

    fireball756 LawnSite Senior Member
    Messages: 706

    And here I thought that by this time next year you would be contemplating changing the name of Brightview
     
  9. Marshall's Yard Service

    Marshall's Yard Service LawnSite Senior Member
    Messages: 451

    That's my plan, but maybe more like in the next decade not next year. Brightview, U.S. Lawns, I want to buy up all the big companies over several decades.
     
  10. Green Mentorship

    Green Mentorship LawnSite Senior Member
    from Heaven
    Messages: 333

    Value (read: wealth) isn't made from buying something someone else made. That's called being a consumer.

    Wealth and value is made by creating something that a buyer values more than it cost you to create.

    In most cases in this industry, you don't want to be a buyer in a transaction.
     

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